Question
On June 30, 2019, Gaston Corporation sold $900,000 of 9% face value bonds for $853,291.45. On December 31, 2019, Gaston sold $530,000 of this same
On June 30, 2019, Gaston Corporation sold $900,000 of 9% face value bonds for $853,291.45. On December 31, 2019, Gaston sold $530,000 of this same bond issue for $557,992.23. The bonds were dated January 1, 2019, pay interest semiannually on each December 31 and June 30, and are due December 31, 2026.
Required: Compute the effective yield rate on each issuance of Gaston's 9% bonds. Click here to access the tables to use with this problem. Round your answers to the nearest whole percentage.
June 30, 2019 issuance: _________% (10.3 is wrong)
December 31, 2019 issuance: _________ %(8.16 is wrong)
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